Proto Labs Inc (PRLB)

Short-term

Turnover ratios

Proto Labs Inc Activity Ratios Analysis:

1. Inventory Turnover:
- Proto Labs Inc's inventory turnover has been consistently increasing over the years, from 19.94 in 2020 to 22.57 in 2024. This indicates that the company is managing its inventory efficiently, turning over its inventory more frequently.
- A higher inventory turnover ratio suggests that Proto Labs is effectively selling its products and replenishing its stock at a faster rate, which is a positive sign for the company's operational efficiency.

2. Receivables Turnover:
- The data provided shows that the receivables turnover ratio is not available for any of the years specified. This could imply that Proto Labs Inc does not have significant accounts receivables or operates on a cash basis, which is beneficial in terms of cash flow management and minimizing credit risk.

3. Payables Turnover:
- Similar to receivables turnover, the payables turnover ratio is not provided for any of the years. However, a lack of information on payables turnover may indicate that the company is not relying heavily on trade credits from suppliers to finance its operations.

4. Working Capital Turnover:
- Proto Labs Inc's working capital turnover has shown some fluctuations over the years, peaking at 4.25 in 2022. This ratio measures how effectively the company utilizes its working capital to generate sales revenue.
- A higher working capital turnover ratio indicates that the company is efficiently utilizing its resources to generate sales, which is crucial for maintaining good liquidity and operational efficiency.

In conclusion, Proto Labs Inc demonstrates strong inventory turnover and working capital turnover ratios, indicating efficient management of inventory and working capital. However, additional data on receivables and payables turnover would provide a more comprehensive analysis of the company's overall activity ratios.

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Average number of days

Proto Labs Inc's inventory turnover has been relatively stable over the past few years, ranging from 16.17 days at the end of December 2024 to 18.31 days at the end of December 2020. This indicates that the company is managing its inventory efficiently, with a decreasing trend in the number of days for which inventory is held, which is generally positive.

However, data for Days of Sales Outstanding (DSO) and Number of Days of Payables are not provided. Typically, a lower DSO is preferred as it indicates faster collection of receivables. A longer payable period suggests that the company is taking longer to pay its creditors, which can be advantageous from a cash flow perspective if managed properly.

Without specific values for DSO and payables, a comprehensive analysis of Proto Labs Inc's activity ratios cannot be fully conducted. However, based on the provided inventory turnover data, it seems that the company is effectively managing its inventory levels.

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Long-term

Proto Labs Inc's fixed asset turnover ratio has shown an increasing trend over the years, from 1.54 in 2020 to 1.70 in 2021 and further to 1.89 in 2022. This indicates that the company is generating more revenue per dollar invested in fixed assets, reflecting improved efficiency in asset utilization.

On the other hand, the total asset turnover ratio has been fluctuating, decreasing from 0.58 in 2020 to 0.53 in 2021, and then increasing to 0.61 in 2022, 0.65 in 2023, and 0.67 in 2024. This suggests that the company is effectively utilizing its total assets to generate sales, with a steady increase in recent years.

Overall, Proto Labs Inc's long-term activity ratios portray a positive picture of the company's operational efficiency and effectiveness in generating revenue from its assets, both fixed and total, over the years.